Why Are Organizations Like KFC,Heinz Foods,Toys R Us,and Anheuser Busch

question 18

Multiple Choice

Why are organizations like KFC,Heinz Foods,Toys R Us,and Anheuser Busch placing more emphasis on sales promotions than ever before?

• A)Because they want to use sales promotions rather than engage in price wars.
• B)Because they are convinced that sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements.
• C)Because the use of sales promotions allows them to cut back and/or completely eliminate the use of coupons.
• D)Because consumers have less time to shop.
• E)Because the use of allowances,deals,and premiums confuse consumers.

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Definitions:

Internet Search Industry

A sector of the economy that involves companies which provide technologies and services for searching information on the Internet.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a targeted audience.

Elasticity

A determination of how the need or provision of a product varies in reaction to changes in its price.

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase, ceteris paribus.